Maine Real Estate License Practice Exam Flashcards

Maine Real Estate License Practice Exam Flashcards Leo Allster is a licensee who was convicted of embezzlement of funds from his Designated Broker. Leo musta. Report his conviction to the Maine Real Estate Commission within ten daysb. Surrender his real estate license immediatelyc. Pay a $2,000 fine to the Maine Real Estate Commissiond. Secure independent errors and omissions insurance to continue to practice in Maine

• Report his conviction to the Maine Real Estate

Commission within ten days Which of the following is not a function of the Maine Real Estate Commission?a. Determine the type of agency relationships that a company will practiceb. Conduct hearingsc. Establish the fees it will charged. Adopt rules governing the practice of real estate

• Determine the type of agency relationships that a

company will practice 44 What words must be imprinted on a trust account check?a. To be redeemed within 5 business daysb.Authorized by the Maine Real Estate Commissionc. Real Estate Trust Account and the name of the brokeraged.Approved Earnest Money Trust Account

• Real Estate Trust Account and the name of the

brokerage

40 A real estate trust account:a. May be interest bearing,

with the interest accruing to the company b. May not be interest bearingc. Must be a checking or savings accountd.Is not required by Maine Real Estate license law and regulations

• Must be a checking or savings account

23 The Maine Real Estate Commission rules allows a licensee to use inducements, such as giving away trips,

cars or things of value, when:a. Beginning business as a

sales agentb. At any time, as long as, the inducement is not advertised on the internetc. Neverd. It does not distort the value of the real estate or services provided

• It does not distort the value of the real estate or services

provided 47 Kate Billingsley is selling her property located in the shoreland zone. The residential property includes a septic system. What must Kate provide to the buyer prior to the closing in regards to the septic system?a. The name of the contractor who originally installed the systemb. A site assessment completed by a licensed subsurface waste disposal designerc. A written statement as to whether or not the septic system has malfunctioned during the 180 days prior to closingd. A written statement as to whether or not the septic system has malfunctioned during the 180 days prior to listing

• A written statement as to whether or not the septic

system has malfunctioned during the 180 days prior to closing 65 Marsha and Paula both work for Undertow Realty in Castine. The Designated Broker has decided to practice

appointed agency at Undertow Realty. Marsha is the appointed agent to the seller at 68 Puffin Lane. Paula is appointed to the buyers. Which of the following statements is true?a. Marsha and Paula both work for Undertow Realty, therefore they are in dual agency and must disclose that fact, in writing to both the seller and the buyers.b. Only Marsha must disclose dual agency as she represents the sellerc. Paula must act as a subagent in this transactiond.Neither Marsha or Paula are in disclosed dual agency

• Neither Marsha or Paula are in disclosed dual agency

38 What must be included on the disclosure on a private water supply?a. The depth of the wellb. Information on potential public water supply sourcesc. Location of the well, in writingd. All of the above

• Location of the well, in writing

The Maine Real Estate Commission may not impose

disciplinary sanctions when a person is guilty of:a. Innocent

misrepresentationb. Puffingc. Class A, B or C crimed.Concealment of pertinent information

• Innocent misrepresentation

63 Under what conditions may a sales agent license possibly be extended for a period not to extend one year?a.Upon written request by the sales agentb. Within 30 days of the expiration of the sales agent licensec. Upon written request by the sales agent and approval of their Designated Brokerd. With documented extenuating circumstances

• With documented extenuating circumstances

32 A buyer's agent anticipates receiving a bonus of $1,500 from the seller of the property. Which of the following is true?a. The buyer's agent must decline the bonusb. The buyer's agent must disclose this bonus in writing to the buyer clientc. The bonus check is legal and can be paid directly to the licenseed. The buyer's agent can only accept the bonus in cash

• The buyer's agent must disclose this bonus in writing to

the buyer client Who appoints members of the Maine Real Estate Commission?a. The Executive Directorb. The current member of the commissionc. The Department of Professional Licensingd. The Governor

• The Governor

.15. The Maine Real Estate Commission requires that heating system disclosures be presented to the buyer in

writing:a. Prior to, or during the preparation of an offerb. At

the time when the information is given to a selling agent by the listing agentc. Prior to the seller signing the deedd.Prior to the buyer signing all financing documents

• Prior to, or during the preparation of an offer

58 What grade must the candidate achieve in the sales agent course in order to pass the course?a. No grade is requiredb. 70%c. 80%d. 75%

• 75%

60 What does it mean to commingle funds?a. Mixing funds belonging to the real estate brokerage agency with funds belonging to clients and other personsb. Adding money to earnest money account to cover service charges c.Withdrawing funds and delivering them to the title company or attorneyd. Depositing money to be held for clients and other persons

• Mixing funds belonging to the real estate brokerage

agency with funds belonging to clients and other persons

4 In Maine, the designated broker must:a. Review and

initial all disclosure forms and paperwork prepared by a sales agent during the first 90 daysb. Hold weekly staff

meetingsc. Personally conduct all training activities for those holding sales agent licensesd. Maintain a trust account in the form of a checking account

• Review and initial all disclosure forms and paperwork

prepared by a sales agent during the first 90 days